AES Indiana seeks to boost electric vehicle usage with incentives that could raise overall rates

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9 thoughts on “AES Indiana seeks to boost electric vehicle usage with incentives that could raise overall rates

  1. It is interesting that IPL instituted a servce of reduced rates for eletric cars in 2012 allowing owners to charge their automobile batteries between 10 pm and 6 am at $0.034 per Killowatt hour even before the first eletric automobiles were built or were for sale without raising the rates to those who did not have or use the service. I have been using this service since December of 2012. Separate meters were installed to measure the use of this service which were turned over to the users over a year ago at no cost to them and continued the price advantage to the present time. It appears that the use of off-peak power has an advantage to the power suppliers as well as the users and it does not seem to be an additional cost to either. It is not obvious why the cost of such system necissitates increased rates for all. Eletric automobile owners already pay an additional fee for license plates to offset the reduced tax revenue for gasoline which they would have paid for if they still drove gas guzzeling cars. This seems appropriate as they drive on roads that are maintained on the gas tax revenue. Since petroleum burning vehicles are a major source of atmospheric polution it seems appropriate to promote the use of eletric vehicles but I am not sure penalizing the public for this by raising their rates for electricity is the only answer.

    Laurence B.

  2. Has anyone performed a credible analysis of the air pollution created to make the electricity to power electric vehicles (EV’s)? Wind and solar generate less than 10% of electricity in the United States, and possibly less than that in Indiana. So the balance of 90+% of electrical generation is provided by nuclear, coal and natural gas as hydro-power is negligible in Indiana. Some call EV’s “coal burners”. Has anyone performed a credible analysis of the environmental impact of creating the massive new EV battery industry needed to bring EV’s to scale? What is the life of EV batteries and how will these chemical-containing batteries be disposed of or recycled when they have no life left? What will the cost of recycling/disposal be and who will bear that cost? Why should the government or the regulated power utilities be in the business of picking the winners and losers by subsidizing technologies they believe are superior? If the economics and social will are favorable for adoption of EV’s, they will be adopted. Charging non-EV users to subsidize the EV users is typical of government over-reach that ignores economics and free markets.

    1. “Charging non-EV users to subsidize the EV users is typical of government over-reach that ignores economics and free markets.”
      1) this is AES Indiana, a Utility, not a government.
      2) IURC rejected similar from Duke because they probably agree it would be government overreach
      3) Should IURC approve this, then you can claim government overreach – but you can’t stop a utility from trying. One of the handful of proposals they submit each year are bound to get approved while the IURC isn’t paying close attention.

      Keep watch on those approving the decisions for stuff like this to happen – as they are tied directly to our inept legislature that has shown they don’t’ care too much about Hoosiers with recent legislation across the board.

  3. Why should 500,000 IPL customer be forced to subsidize a few who can afford electric vehichles. Forcing people who are subject to substandard public transportation to ‘pay for’ discounts for Tesla owners seems very misguided. If AES/IPL want to help the environment maybe they can work on shutting down coal plants.

    1. Or, you know Anne, they could lean on the House Environmental Committee Chair, Rep. Gutwein to actually hear legislation this year. Not once has his committee that he chairs, and gets an extra taxpayer stipend for, met this year to hear ANY legislation. What’s the point of having someone to lead something that doesn’t exist. How is not hearing legislation proposed by your colleagues representing the people in your district, and when you’re a Chair – the State?

      Lets have our legislators do their jobs. That would be great!

  4. “Charging non-EV users to subsidize the EV users is typical of government over-reach that ignores economics and free markets.
    1) this is AES Indiana, a Utility, not a government.”

    AES is a REGULATED utility. Thus a government agency decides if they can implement a pricing scheme to charge all customers to subsidize EV’s for those that buy them. Utilities are a monopoly. If I want to buy electricity from a competitor because I don’t like their pricing/policies, I can’t. That’s why they are regulated. What happens in practice is that utilities hire lobbyists to pitch their pricing scheme to the regulators … and if they can’t sell them, then to the legislators … to jam this deal down the throats of all rate payers. This is in the name of capitalism on the part of the utilities. They want to sell more electricity. If they can accelerate the adoption of new technology like EV’s that consume electricity, by having all their customers subsidize those purchasing EV’s, they sell more electricity and increase profits. I favor capitalism …, without regulation and government picking the winners and losers. Let the adopters of the new technology pay for what they want. If the utilities want adoption of the technology to accelerate they should invest in making EV’s more economically attractive … without making their regular rate payers pick up the tab.

  5. I am not an IPL customer and yet this angers me beyond belief. If they want to offer subsidies great but the cost of said subsidies should come from their profits. Their current customers should not have their rates raised to cover these cost. It is ridiculous.

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